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How not to report dishonest brokers in the Forex market?

The irresistible appeal of currency trading

Like any other speculative activity, largely driven by chance, Forex trading overwhelmingly turns out to be a disaster.

"Learn how to make extraordinary daily profits by trading the foreign exchange market. Join us and start getting rich." This is the message on Internet advertising banners or annoying phone calls from many online brokers. And many people fall for it.

Unscrupulous operators offering their brokerage services use cognitive distortions that have been widely studied in behavioral finance. All around are people who have done nothing for their extra pension, who have not protected their capital from rare and dramatic events, who have not learned how to invest their savings, but who are surprisingly willing to be tempted by the idea of getting rich quickly by trading on Forex (foreign exchange market), as the large international platform where currencies are exchanged is called.

The foreign exchange market is even more attractive than the stock markets because it is a very liquid and efficient market where those who trade in it have the feeling that they can compete with anyone on an equal footing. Obviously, there are those among Forex operators who strive for a non-aggressive stance in the provision of services and provide preventive education to those who are enthusiastic about this market. However, this sector suffers from belonging to the gray zone of poorly and poorly regulated intermediation, where several pathological episodes have been recorded.

First of all, the problem of regulatory arbitrage, i.e. the possibility of using the "free" rules of some countries to provide services to residents of more rigid states, needs to be addressed. In this area, before continuing with annoying phone calls, it is always a good idea to ask people offering online trading services to introduce you and familiarize you with the contract you need to sign in order to use their services. You will see how they will try to brush off this request, but it is a starting point to protect yourself. At the end of the courtship, before allowing you to work, they will make you sign it by nonchalantly asking you to check a box, directing you to the internet at the end of a long and tedious phone call so you don't have to read it.

Like any other speculative activity, driven largely by chance, Forex trading overwhelmingly turns out to be a crash. This should come as no surprise, as even in online poker most players lose money, yet there is never a shortage of new adepts who sit down at the virtual tables. Yes, online poker is very similar to trading in its motives, as those who engage in it are not really looking for profit, but for the adrenaline of possible profit. But in poker, at least no one considers it an investment.




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